Former US Solicitor General Backs Custodia in 'Fed Appeal,' Questions Constitutionality of Fed Structure

Former US Solicitor General Backs Custodia in 'Fed Appeal,' Questions Constitutionality of Fed Structure

Custodia, a cryptocurrency custodian, has received the backing of former US Solicitor General Paul Clement in its appeal against the Federal Reserve's (Fed) decision. In an amicus brief filed with the court, Clement argues that "the Fed's structure, giving the Fed chair unreviewable discretion, raises serious questions under Article II of the Constitution." Clement cites the Supreme Court's recent Chevron deference decision, which held that courts should defer to an agency's interpretation of a statute when it is reasonable. However, Clement argues that the Fed's structure is not subject to Chevron deference because it does not meet the criteria set forth by the Court. "The fact that Clement is raising fundamental constitutional questions about the Fed's structure is significant," wrote Fox Business reporter Eleanor Terrett. "It shows that there is a growing concern about the Fed's power and the lack of accountability in its decision-making." The Fed has been criticized for its opaque decision-making process and its lack of transparency. Clement's brief argues that these problems are inherent to the Fed's structure, which gives the Fed chair too much power. The outcome of Custodia's appeal could have significant implications for the future of the Fed. If the court rules in favor of Custodia, it could force the Fed to make changes to its structure and decision-making process. This could make the Fed more accountable to the public and more transparent in its operations.